Government
Type: Parliamentary democracy.
Constitution: Adopted November 17, 1991;
effective November 20, 1991.
Independence: September 8, 1991 (from
Yugoslavia).
Branches: Executive--prime minister (head
of government), council of ministers (cabinet),
president (head of state). Legislative--unicameral
parliament or Sobranie (120 members elected by
popular vote to 4-year terms from party lists
based on the percentage parties gain of the
overall vote in each of the six election units).
Judicial--Supreme Court, Republican
Judicial Council, Constitutional Court of the
Republic of Macedonia, Public Prosecutor's
Office, Public Attorney. Legal system is based
on civil law system; judicial review of
legislative acts.
Subdivisions: 84 opstini (municipalities) plus
the city of Skopje.
Suffrage: Universal at age 18.
Main political parties: Social-Democratic Union
of Macedonia (SDSM); Internal Macedonian
Revolutionary Organization-Democratic Party for
Macedonian National Unity (VMRO-DPMNE); Internal
Macedonian Revolutionary Organization-People’s
Party (VMRO-NP); Democratic Union for
Integration (DUI); Democratic Party of Albanians
(DPA); Party for Democratic Prosperity (PDP);
National Democratic Party (NDP);
Liberal-Democratic Party (LDP); Socialist Party
of Macedonia (SPM); Liberal Party (LP);
Democratic Alternative (DA); Democratic Union
(DU); Democratic Party of the Turks in Macedonia
(DPTM); Democratic League of Bosniaks;
Democratic Party of Serbs in Macedonia, United
Party of Romas in Macedonia; Democratic Union of
Vlachs from Macedonia; Labor-Agricultural Party
of Macedonia, Socialist-Christian Party of
Macedonia; Green Party of Macedonia.

GEOGRAPHY
Macedonia is located in the heart of south
central Europe. It shares a border with Greece
to the south, Bulgaria to the east, Serbia and
Montenegro (Serbia and Kosovo) to the north, and
Albania to the west. The country is 80%
mountainous, rising to its highest point at Mt.
Korab (peak 2,764 m).

PEOPLE
Since the end of the Second World War,
Macedonia's population has grown steadily, with
the greatest increases occurring in the ethnic
Albanian community. From 1953 through the time
of the latest official census in 2002 (initial
official results were released December 2003),
the percentage of Albanians living in Macedonia
rose 313%. The western part of the country,
where most ethnic Albanians live, is the most
heavily populated, with approximately 40% of the
total population. Due to population growth and
as part of former communist industrial policy,
more people have moved into the cities in search
of employment. Macedonia also experienced
sustained high rates of emigration.

HISTORY
Throughout its history, the present-day
territory of Macedonia has been a crossroads for
both traders and conquerors moving between the
European continent and Asia Minor. Each of these
transiting powers left its mark upon the region,
giving rise to a rich and varied cultural and
historical tradition.

The ancient territory of Macedon included, in
addition to the areas of the present-day
Macedonia, large parts of present-day northern
Greece and southwestern Bulgaria. This ancient
kingdom reached its height during the reign of
Alexander III ("the Great"), who extended
Macedon's influence over most of Asia Minor, the
Levant, Egypt, Mesopotamia, Persia, and even
parts of India. After Alexander's death in 323
BC, the Macedon Empire gradually declined, until
Rome conquered it in 168 BC and made it a
province in 148 BC.

After the fall of the Western Roman Empire,
the territory of Macedonia fell under the
control of the Byzantine Empire in the 6th and
7th centuries. It was during this period that
large groups of Slavic people migrated to the
Balkan region. The Serbs, Bulgarians, and
Byzantines fought for control of Macedonia until
the late 14th century, when the Ottoman Turks
conquered the territory; it remained under
Turkish rule until 1912.

After more than four centuries of rule,
Ottoman power in the region began to wane, and
by the middle of the 19th century, Greece,
Bulgaria, and Serbia were competing for
influence in the territory. During this time, a
nationalist movement emerged and grew in
Macedonia. The latter half of the 19th century
was marked by sporadic nationalist uprisings,
culminating in the Ilinden Uprising of August 2,
1903. Macedonian revolutionaries liberated the
town of Krushevo and established the short-lived
Republic of Krushevo, which was put down by
Ottoman forces after 10 days. Following Ottoman
Turkey's defeat by the allied Balkan
countries--Bulgaria, Serbia, Montenegro, and
Greece--during the First Balkan War in autumn
1912, the same allies fought the Second Balkan
War over the division of Macedonia. The August
1913 Treaty of Bucharest ended this conflict by
dividing the territory between Bulgaria, Greece,
and Serbia. The 1919 Treaty of Versailles
sanctioned partitioning Macedonia between The
Kingdom of Serbs, Croats and Slovenes, Bulgaria,
and Greece. In the wake of the First World War,
Vardarian Macedonia (the present day area of
Macedonia) was incorporated into the newly
formed Kingdom of Serbs, Croats, and Slovenes.

Throughout much of the Second World War,
Bulgaria and Italy occupied Macedonia. Many
people joined partisan movements during this
time and succeeded in liberating the region in
late 1944. Following the war, Macedonia became
one of the constituent republics of the new
Socialist Federal Republic of Yugoslavia under
Marshall Tito. During this period, Macedonian
culture and language flourished.

As communism fell throughout Eastern Europe
in the late 20th century, Macedonia followed its
other federation partners and declared its
independence from Yugoslavia in late 1991. The
new Macedonian constitution took effect November
20, 1991 and called for a system of government
based on a parliamentary democracy. The first
democratically elected coalition government was
led by Prime Minister Branko Crvenkovski of the
Social Democratic Union of Macedonia (SDSM) and
included the ethnic Albanian Party for
Democratic Prosperity (PDP). Kiro Gligorov
became the first President of an independent
Macedonia.

President Gligorov was the first president of
a former Yugoslav republic to relinquish office.
In accordance with the terms of the Macedonian
constitution, his presidency ended in November
1999 after 8 years in office, which included
surviving a car bombing assassination attempt in
1995. He was succeeded by former Deputy Foreign
Minister Boris Trajkovski (VMRO), who defeated
Tito Petkovski (SDSM) in a second-round run-off
election for the presidency November 14, 1999.
Trajkovski's election was confirmed by a
December 5, 1999 partial re-vote in 230 polling
stations, which the Macedonian Supreme Court
mandated due to election irregularities.

Macedonia was the only republic of the former
Yugoslavia whose secession in 1991 was not
clouded by ethnic or other armed conflict,
although the ethnic Albanian population declined
to participate in the referendum on
independence. During the Yugoslav period,
Macedonian ethnic identity exhibited itself, in
that most of Macedonia's Slavic population
identified themselves as Macedonians, while
several minority groups, in particular ethnic
Albanians, sought to retain their own distinct
political culture and language. Although
interethnic tensions simmered under Yugoslav
authority and during the first decade of its
independence, the country avoided ethnically
motivated conflict until several years after
independence.

In November 1998 parliamentary elections, the
SDSM lost its majority. A new coalition
government emerged under the leadership of Prime
Minister Ljubco Georgievski of the Internal
Macedonian Revolutionary Organization-Democratic
Party for Macedonian National Unity (VMRO-DPMNE).
The initial coalition included the ethnic
Albanian Democratic Party of Albanians (DPA).

Ethnic minority grievances, which had erupted
on occasion (1995 and 1997), rapidly began to
gain political currency in late 2000, leading
many in the ethnic Albanian community in
Macedonia to question their minority protection
under, and participation in, the government.
Tensions erupted into open hostilities in
Macedonia in February 2001, when a group of
ethnic Albanians near the Kosovo border carried
out armed provocations that soon escalated into
an insurgency. Purporting to fight for greater
civil rights for ethnic Albanians in Macedonia,
the group seized territory and launched attacks
against government forces. Many observers
ascribed other motives to the so-called National
Liberation Army (NLA), including support for
criminality and the assertion of political
control over affected areas. The insurgency
spread through northern and western Macedonia
during the first half of 2001. Under
international mediation, a cease-fire was
brokered in July 2001, and the government
coalition was expanded in July 2001 to include
the major opposition parties.

The expanded coalition of ruling ethnic
Macedonian and ethnic Albanian political
leaders, with facilitation by U.S. and European
Union (EU) diplomats, negotiated and then signed
the Ohrid Framework Agreement in August 2001,
which brought an end to the fighting. The
agreement called for implementation of
constitutional and legislative changes, which
lay the foundation for improved civil rights for
minority groups. The Macedonian parliament
adopted the constitutional changes outlined in
the accord in November 2001. The grand coalition
disbanded following the signing of the Ohrid
Framework Agreement and the passage of new
constitutional amendments. A coalition led by
Prime Minister Georgievski, including DPA and
several smaller parties, finished out the
parliamentary term.

In September 2002 elections, an SDSM-led
pre-election coalition won half of the 120 seats
in parliament. Branko Crvenkovski was elected
Prime Minister in coalition with the ethnic
Albanian Democratic Union for Integration (DUI)
party and the Liberal-Democratic Party (LDP).

On February 26, 2004 President Trajkovski
died in a plane crash in Bosnia. Presidential
elections were held April 14 and 28, 2004.
Then-Prime Minister Branko Crvenkovski won the
second round and was inaugurated President on
May 12, 2004. The parliament confirmed Hari
Kostov, former Interior Minister, as Prime
Minister June 2, 2004. Prime Minister Kostov
resigned November 15, 2004. On December 17,
2004, former Defense Minister Vlado Buckovski
was confirmed by parliament as Prime Minister,
maintaining the coalition with the ethnic
Albanian Democratic Union for Integration (DUI)
and the Liberal-Democratic (LDP) parties.

With international assistance, the current
governing coalition has completed the
legislative implementation of the Ohrid
Framework Agreement, which is a precondition for
Macedonia’s integration into Euro-Atlantic
institutions. A referendum scheduled for
November 7, 2004, which would have delayed
completion of this process, failed, freeing the
way for the government to complete Framework
Agreement implementation. The government
continues to make significant strides on the
practical implementation of the Agreement.

GOVERNMENT AND POLITICAL CONDITIONS
The unicameral assembly (Sobranie) consists of
120 seats. Members are elected by popular vote
from party lists, based on the percentage
parties gain of the overall vote in each of six
election districts of 20 seats each. Members of
parliament have a 4-year mandate.

The prime minister is the head of government
and is selected by the party or coalition that
gains a majority of seats in parliament. The
prime minister and other ministers must not be
members of parliament.

The president represents Macedonia at home
and abroad. He is the commander in chief of the
armed forces of Macedonia and heads its Security
Council. The president is elected by general,
direct ballot and has a term of 5 years, with
the right to one re-election.

General parliamentary elections were last
held on September 15, 2002. Presidential
elections were held April 14 and 28, 2004 to
succeed President Trajkovski, who died in office
in February 2004. Local elections on the basis
of a new municipal division mandated by the
Framework Agreement were held in March-April
2005.

The court system consists of a Supreme Court,
Constitutional Court, and local and appeals
courts. The Republic Judicial Council is
composed of 7 members elected by parliament for
a period of 6 years with the right to one
re-election; it governs the ethical conduct of
judges and recommends to parliament the election
of judges. The Supreme Court is the highest
court in the country and is responsible for the
equal administration of laws by all courts. Its
judges are appointed by parliament without time
limit. The Constitutional Court is responsible
for the protection of constitutional and legal
rights and for resolving conflicts of power
between the three branches of government. Its 9
judges are appointed by parliament with a
mandate of 9 years, without the possibility of
re-election. An independent Public Prosecutor is
appointed by parliament with a 6-year mandate.

The country maintains an embassy in the
United States at 1101 30 Street, NW, Suite 302,
Washington, DC 20007 (tel: (202) 337-3063; fax:
(202) 337-3093).

ECONOMY
Macedonia is a small economy with a gross
domestic product (GDP) of about $5.1 billion,
representing about 0.01% of the total world
output. It also is an open economy, highly
integrated into international trade, with a
total trade-to-GDP ratio of 90.2%. Agriculture
and industry have been the two most important
sectors of the economy, but the services sector
has gained prominence in the past few years.
Like most transition economies, problems
persist, even as Macedonia takes steps toward
reform. A largely obsolete industrial
infrastructure has not seen much investment
during the transition period. Work force
education and skills are competitive, but
without adequate job opportunities, many with
the best skills seek employment abroad. A low
standard of living, high unemployment rate, and
relatively low economic growth rate are the
central economic problems.

Five years of continuous economic expansion
in Macedonia was interrupted by the 2001
conflict, which led to a contraction of 4.5% in
2001. Growth started to pick up in 2003 (3.4%)
and continued in 2004 (2.9%) and the first half
of 2005 (3.7%). Living standards still lag
behind those enjoyed before independence. In
2005, real growth is projected to reach 3.8%
with inflation of up to 1.5%. The United States
is supporting Macedonia's transition to a
democratic, secure, market-oriented society with
substantial amounts of assistance.

Background
After the breakup of Yugoslavia in 1991,
Macedonia, the former Yugoslavia's poorest
republic, faced formidable economic challenges
posed by both the transition to a market economy
and a difficult regional situation. The breakup
deprived Macedonia of key protected markets and
large transfer payments from the central
Yugoslav government. The war in Bosnia,
international sanctions on Serbia, and the 1999
crisis in neighboring Kosovo delivered
successive shocks to Macedonia's trade-dependent
economy. The government's painful but necessary
structural reforms and macroeconomic
stabilization program generated additional
economic dislocation. Macedonia’s economy was
hurt especially by a trade embargo imposed by
Greece in February 1994 in a dispute over the
country's name, flag, and constitution, and by
international trade sanctions against Serbia
that were not suspended until a month after
conclusion of the Dayton Accords. The impact of
the 2001 ethnic Albanian insurgency in
Macedonia, decreased international demand for
Macedonian products, canceled contracts in the
textile and iron and steel industry, and poor
restructuring of the private sector affected
Macedonia's growth and foreign trade prospects
through 2004. An international donors
conference, organized by the World Bank and the
European Commission, was held March 12, 2002, at
which donors pledged $275 million to assist in
covering Macedonia's projected budget gap,
implementing Framework Agreement reforms, and
re-energizing the Macedonian economy.

Although concerns stemming from the 2001
conflict linger, all constitutional changes and
legislation mandated by the internationally
mediated Framework Agreement have been
implemented, and Macedonia's political and
security situation is stable. This has allowed
the government to refocus energies on domestic
reforms, boosting economic growth, and
attracting increased levels of foreign
investment. In 2004, the government passed a
progressive Trade Companies Law aimed at easing
impediments to foreign investment, providing tax
and investment incentives, and guaranteeing
shareholder rights. The government’s progress on
structural economic reforms slowed in 2004 as
the country faced another series of
challenges--the death of President Trajkovski,
resulting early presidential elections, a
contentious debate over Framework
Agreement-mandated decentralization legislation,
and a polarizing referendum on new municipal
boundaries, which took place November 7, 2004.

MacroeconomyReal GDP in the first half of 2005 grew by
3.7%, following 2.9% growth in 2004. That growth
was mainly driven by the re-opening of a few
loss-making companies and by strong exports of
primary metals. Industrial output rose
dramatically in the first half of 2005,
increasing by 9.3%. The annualized consumer
price index (CPI) at the end-year rose by 0.2%.
The official unemployment rate climbed to 37.4%.
A conservative fiscal policy maintained a budget
deficit of -0.1% during the first half of 2005;
the government's target is -0.6% for 2005.
Monetary policy also remained conservative,
which provided little room for credit expansion.
Exports grew faster than imports in the first
half of 2005, narrowing the trade deficit to
10.6% of GDP, and reducing the current account
deficit to about 2.1% of GDP. External debt
remained stable at 35.2% of GDP.

In late 2005, Macedonian authorities
concluded a new Stand-By Arrangement with the
IMF and a Programmatic Development Policy Loan (PDPL)
with the World Bank.

Trade
Macedonia remains committed to pursuing
membership in European and global economic
structures. It became a full World Trade
Organization (WTO) member in April 2003.
Following a 1997 cooperation agreement with the
European Union (EU), Macedonia signed a
Stabilization and Association Agreement with the
EU in April 2001, giving Macedonia duty-free
access to European markets. Macedonia has had a
foreign trade deficit since 1994, which reached
a record high of $1,229 million in 2004. Total
2004 trade (imports plus exports of goods and
services) was $4.58 billion, or 90.2% of GDP.
Macedonia's major trading partners are Serbia
and Montenegro, Germany, and Greece. The United
States is Macedonia's eleventh-largest trading
partner. In 2004, U.S.-Macedonia trade in goods
totaled $119.8 million. According to Macedonian
trade data, U.S. exports accounted for 1.6% of
Macedonia's total imports. U.S. meat, mainly
poultry, and electrical machinery have been
particularly attractive to Macedonian importers.
Principal Macedonian exports to the United
States are tobacco, apparel, footwear, and iron
and steel.

Macedonia has signed Free Trade Agreements
with Albania, Bosnia and Herzegovina, Serbia and
Montenegro, Bulgaria, Croatia, Ukraine,
Slovenia, Turkey, Romania, and the European Free
Trade Association countries. It also has signed
an Interim Free Trade Agreement with the UN
Mission in Kosovo.

DEFENSE
Macedonia established its armed forces following
independence and the complete withdrawal of the
Yugoslav National Army (JNA) in March 1992. The
Macedonian Armed Forces consist of an army,
navy, air and air defense force, and a police
force (under the Ministry of Interior). Under
its North Atlantic Treaty Organization (NATO)
Membership Action Plan, Macedonia has launched a
major effort to reform and reconstruct its armed
forces with the goal of building and sustaining
a modern, professional defense force of about
12,000 troops.

Since its independence in 1991, Macedonia has
worked toward increased ties with the
transatlantic community. Despite the fragile
political, economic, and military situation in
the region over the past decade, Macedonia has
provided consistent support for NATO. Macedonia
is engaged in military, economic, and political
reforms to enhance its security and NATO
candidacy, although the security crisis of 2001
represented a setback to those efforts. The
Government of Macedonia plans to assume greater
responsibility for its share of ensuring the
security of the region without reliance on an
international military presence. Successive
Macedonian governments have viewed integration
into Euro-Atlantic political, economic, and
security institutions as the country's primary
foreign policy goal. In pursuit of these goals,
Macedonia is restructuring its military to be
smaller, more affordable, defensively oriented,
and interoperable with NATO. The Macedonian
Government has welcomed close cooperation with
the U.S. military and seeks to deepen this
relationship as it restructures its forces.

The UN Preventive Deployment Force (UNPREDEP)
in Macedonia patrolled the borders with Serbia
and Albania from 1992 to November 1998,
enhancing Macedonian stability. In early
December 1998, the Macedonian Government
approved local basing of the NATO Extraction
Force (XFOR) and the Kosovo Verification
Coordination Cell (KVCC), in anticipation of a
political resolution of the Kosovo crisis, also
contributing to Macedonia's safety and
stability. Prior to the bombing campaign in
Yugoslavia in March 1999, the number of NATO
troops in Macedonia peaked at 17,000.

In the wake of the 2001 insurgency in
Macedonia, at the government's request, NATO
deployed Task Forces "Essential Harvest," then
"Amber Fox," and later "Allied Harmony" in
Macedonia in confidence-building tasks and
protection for Organization for Security and
Cooperation in Europe (OSCE) monitors in the
former conflict area. Task Force Essential
Harvest collected more than 4,000 weapons from
the National Liberation Army (NLA) in a
confidence-building effort to restore stability
within Macedonia. "Amber Fox" (June through
December 2002) and its smaller successor "Allied
Harmony" (January to March 2003) worked with
Macedonian security forces to ensure the safety
of international monitors overseeing Framework
Agreement implementation in Macedonia. On March
31, 2003, the EU (EUFOR) took over this role
from NATO with the launch of "Operation
Concordia," which ended December 15, 2003. At
the Macedonian Government's request, the EU
established a Police Advisory Mission in
Macedonia in December 2003 to assist the
country's police reforms. The mission, Proxima,
has been extended through December 2005.

Macedonia continues to play an indispensable
role as the Kosovo Force's (KFOR) rear area,
hosting the logistical supply line for KFOR
troops in Kosovo. As part of these efforts,
Macedonia hosts about 150 NATO troops, including
U.S. troops, in support of NATO operations in
Kosovo and assisting Macedonia's efforts to
reform its military to meet NATO standards. Due
to improvements in the security situation and
U.S. KFOR drawdowns in Kosovo, the United States
closed its Camp Able Sentry base in Macedonia in
December 2002. Close U.S.-Macedonian bilateral
defense cooperation continues. Macedonia also
contributes troops to coalition operations in
Iraq and Afghanistan.

FOREIGN RELATIONS
In February 1994, Greece imposed a trade embargo
on Macedonia due to disputes over the use of the
name "Macedonia" and other issues. Greece and
Macedonia signed an interim accord in October
1995 ending the embargo and opening the way to
diplomatic recognition and increased trade.
After signing the agreement with Greece,
Macedonia joined the Council of Europe, the
Organization for Security and Cooperation in
Europe (OSCE), and NATO's Partnership for Peace
(PfP). Athens and Skopje began talks on the name
issue in New York under UN auspices in December
1995, opening liaison offices in respective
capitals January 1996. These talks continue.

The stability of the young state was gravely
tested during the 1999 Kosovo crisis, when
Macedonia temporarily hosted about 360,000
refugees from the violence and ethnic cleansing
in Kosovo, as Serb atrocities against Kosovar
Albanians and other minority groups caused a
mass exodus. The refugee influx put significant
stress on Macedonia's weak social
infrastructure. With the help of NATO and the
international community, Macedonia ultimately
was able to accommodate the influx. Following
the resolution of the conflict, the overwhelming
majority of refugees returned to Kosovo. The
Macedonian Government demonstrated a strong
commitment to regional stability as an essential
partner during the Kosovo crisis.

In addition to improving relations with its
neighbors, Macedonia has made strides toward
European and international integration,
especially with the EU and NATO. Macedonia is an
active participant in NATO's Partnership for
Peace and Membership Action Plan, the OSCE, and
United Nations, and was accepted as a member of
the World Trade Organization (WTO) in October
2002. In May 2003, Macedonia, Albania, Croatia,
and the U.S. created the
Adriatic Charter, modeled on the Baltic
Charter, as a mechanism for promoting regional
cooperation to advance each country's NATO
candidacy.

In 1999, the EU agreed to develop a
Stabilization and Association Agreement (SAA)
with Macedonia; negotiations with Macedonia were
launched April 5, 2000. The SAA was signed April
2001 and came into force in April 2004. Its
trade and trade-related provisions have been in
force since June 2001. For Macedonia to
successfully integrate within the global arena,
continued efforts to strengthen its multi-ethnic
civil society institutions, to develop measures
to promote economic growth and investment, and
to foster strong indigenous non-governmental
organizations are necessary. On November 9, 2005
the European Commission issued an "avis" on
Macedonia’s EU membership candidacy in which it
recommended EU candidate status for the country.
It recommended beginning formal accession
negotiations after Macedonia has made further
progress on a number of reform fronts, including
combating corruption; enacting judicial,
administrative, and economic reforms; and
conducting free and fair parliamentary
elections, in accordance with European
standards, in 2006.

U.S.-MACEDONIAN RELATIONS
The United States and Macedonia have enjoyed
good bilateral relations since Macedonia gained
its independence in 1991. The United States
formally recognized Macedonia on February 8,
1994, and the two countries established full
diplomatic relations on September 13, 1995. The
U.S. Liaison Office was upgraded to an Embassy
in February 1996, and the first U.S. Ambassador
to Skopje arrived in July 1996. The development
of political relations between the United States
and Macedonia has ushered in a whole host of
other contacts between the two states.

During the 1999 Kosovo crisis, Macedonia
played a key role in facilitating U.S. and
international efforts in the region by accepting
hundreds of thousands of refugees, served as a
launching pad for allied military efforts, and
functioned as the long-term conduit for
humanitarian assistance programs and military
logistics for Kosovo. The United States,
together with its European allies, strongly
condemned the initiators of the 2001 insurgency
in Macedonia and closely supported the
government and major parties' successful efforts
to forge a peaceful, political solution to the
crisis through the Ohrid Framework Agreement. In
partnership with the EU and other international
organizations active in Macedonia, the United
States is facilitating the Macedonian
Government's implementation of the Framework
Agreement and fostering long-term peace and
stability in the country. Macedonia continues to
make an important contribution to regional
stability by facilitating the logistical supply
of NATO (including U.S.) peacekeepers in Kosovo.

Today, Macedonia and the United States enjoy
a cooperative relationship across a broad range
of political, economic, cultural, military, and
social issues. The United States supports
Macedonia's aspirations to build a
democratically secure and market-oriented
society, and has donated large amounts of
foreign assistance for military reform,
democracy and economic reform, and humanitarian
relief efforts. The United States pledged $6
million in debt relief and $22 million in
Economic Support Funds to Macedonia in 1999 to
help offset the strains of the Kosovo crisis.
The United States provided an estimated $35
million to Macedonia to help host communities
cope with refugee inflows. In addition, the
United States helped reduce the refugee impact
on Macedonia by resettling in the United States
more than 13,000 persons through the
Humanitarian Evacuation Program. Bilateral
assistance budgeted to Macedonia under the
Support Europe Economic Development (SEED) Act
totaled over $320 million from 1990 to 2004,
including budget support and other assistance to
help Macedonia recover from the 2001 crisis.
Macedonia received approximately $37 million in
SEED Act assistance in 2005.

U.S. Agency for International Development's
(USAID) programs in Macedonia promote
accelerated growth, support stronger democratic
institutions, and help educate Macedonians for a
modern economy. A key focus of U.S. assistance
is helping Macedonia implement the August 2001
Framework Agreement; implementing the
decentralization provision is a priority. USAID
is targeting capacity building for local
government officials, who will have more
authority and responsibility devolved from the
central government, as well as providing grants
to fund small-scale infrastructure projects.

A further priority of U.S. assistance is to
facilitate Macedonia’s transition to a market
economy and increase employment and growth
levels. USAID has identified and is now
assisting the five most competitive sub-sectors
of Macedonia’s economy. USAID also helps
Macedonian enterprises through business resource
centers, improved access to credit and equity,
trade and investment facilitation, and training.
Programs target improvements in the
business-enabling environment by helping to
bring legislative and regulatory frameworks in
line with EU standards and improving the
transparency and efficiency of government
services through technology. A resident U.S.
Department of Treasury advisor is assisting the
Ministry of Finance improve strategy, planning
and execution, and public expenditure
management.

USAID is working to strengthen Macedonia's
non-governmental organization (NGO) and
community networks, encourage judicial reform,
in particular by modernizing court
administration, and build capacity and
transparency of the parliament and local
governments. USAID has helped strengthen the
State Election Commission’s capacity to
administer elections and supported domestic NGO
election monitoring of the spring 2005 municipal
elections. A U.S. Department of Justice Resident
Legal Advisor focuses on strengthening the
independence of the judiciary, efficacy of
public prosecution, reform of criminal codes,
and capacity to fight trafficking in persons and
organized crime.

Complementing its assistance in Macedonia’s
political and economic transition, USAID
programs improve education and human capacity in
Macedonia through projects on the primary,
secondary, and post-secondary levels. Targets
include improving teaching techniques,
modernizing vocational education, providing
computer labs in all schools, and expanding
broadband Internet service throughout the
country using primary and secondary schools as a
platform. Other programs address crosscutting
issues, including interethnic cooperation,
assistance to the Roma minority, corruption,
HIV/AIDS, and trafficking.

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